Investing

Stocks Down In Lower Volume; Altisource Hits High

Stocks stayed in negative territory but had climbed off their session lows in early-afternoon action Monday. They had been up in morning action, but gave up their gains.

The Nasdaq was down 0.4%. The S&P 500 lost 0.1%, while the Dow Jones industrial average edged down a fraction. Volume was tracking down from Friday's levels on both main exchanges.

Altisource Portfolio Solutions (ASPS) surged 5% in heavy turnover, hitting a new high. Altisource, which has often appeared in IBD's Top World Stocks screen, provides mortgage-management services and related technology products.

Altisource appeared to be getting a lift Monday from a favorable mention in a Barron's article. Investor Doug Kass of Seabreeze Partners said he still likes Altisource as much as he did in 2009, when he called it his "stock of the decade." In terms of chart action, the stock has cleared recent resistance around the 75 level, but it hasn't formed a conventional base lately. It's extended from its last buying range.

Apple (AAPL) rose 2% in above-average volume, nearing the 600 level. The website iMore.com, citing unnamed sources, reported that a new iPhone and a smaller iPad will be unveiled at an Apple event on Sept. 12. Apple, No. 6 in the IBD 50, has been consolidating since April. It shed 3% last week on its disappointing quarterly earnings report, but now has erased some of that loss.

On the downside, Coinstar (CSTR) slid 4% in strong volume, dropping further under its 200-day moving average. Last week, the operator of Redbox DVD rental kiosks tumbled 16% as its quarterly revenue missed expectations. Coinstar's IBD Composite Rating has declined to 76 out of a best-possible 99.

In merger and acquisition news, Chicago Bridge & Iron (CBI) said it would absorb Shaw Group (SHAW) in a $3 billion deal. Shaw is focused on large-scale energy and government sector projects. The deal would create a global operation with more than 50,000 employees and a backlog of more than $28 billion, the companies said. Shaw, which has a weak Composite Rating of 35, soared 55%. Chicago Bridge & Iron, which has a 62 Composite Rating, slumped 14%, undercutting its 50-day and 200-day moving averages.